As the demand for environmental solutions for marine fuels rise ahead of impending IMO regulations, the global technology company Wartsila is witnessing a steep increase in LNG and scrubbers orders, reports Platts.
Rising Orders
Wartsila announced on Thursday that the company’s marine solutions segment had an order intake totaling Eur409 million ($476.5 million) in the second quarter which ended on June 30.
Up 13% from a year earlier, it said in its half-year financial report.That equates to about 26.3% of the company’s total order intake in Q2.
In the cruise and ferry segment, which represented 20% of the order intake, Wartsila received orders for several options from major companies, it said.
Ordering was active also in the gas carrier segment, which accounted for 22% of orders received, it added.
Good Sign
From January 1, 2020, the International Maritime Organization’s global marine fuels sulfur limit is to fall to 0.5%, from 3.5%, forcing shipowners to either switch to using cleaner, more expensive fuels or install scrubbers.
So, in hindsight this sudden rise in Wartsila orders is a good sign.
“The demand for environmental solutions continued in the quarter, with a considerable number of scrubber systems ordered for newbuild vessels,” it said.
Recent Developments
Last week, the company said it had signed a deal worth Eur170 million with a major European shipping company, which ordered Wartsila’s hybrid exhaust gas cleaning equipment, or scrubbers, and retrofit services for its container vessels.
In June, Wartsila inked a deal with Wilhelmsen Ship Management to cover the maintenance of exhaust gas cleaning systems installed in three vessels managed by Wilhelmsen.
Renewable Energy Plan
However, scrubbers aren’t the only solution that Wartsila is offering to the shipping industry as environmental regulations loom.
In June, Wartsila launched a new vision for the energy market – a 100% renewable energy future.
“Our ambition is to lead the industry’s transformation towards a future that utilizes 100% renewable energy, with flexible capacity as the enabler,” it said.
The LNGPac fuel system offered by Wartsila can be used as a standalone product, or as part of a complete propulsion system.
In April, the IMO agreed on a plan for shipping to reduce its greenhouse gas emissions by 50% from 2008 levels by 2050.
In May, Wartsila said it received the 100th order for its fuel gas supply system, or LNGPac, a complete fuel gas handling system for LNG fueled ships. The system comprises a bunkering station, the LNG fuel tank and related process equipment, as well as the control and monitoring system.
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Source: S&P Global
